My house was built on 10 inch block The contractor wants to put 8 inch block on 3 walls instead of the 10! IS this ok, and where should he put the block as the base of the house is set up for 10 inch block so there will be an overhang of 1 7/8? Does he need to split the difference? How does he wheather pruf the part sticking out, as I have squirles, and chip monks, that like bear wood!!

We don't have the design to see your house and the location you are building in, but I will say I live in Michigan and have never seen in any code books a requirement for over a 6 inch wall and 4 is ok in many places.

We us brick ledges which create the type of over hang you are describing and water proof around it. I would put the over hang to the inside if that would work.